Question: Ellen has an 8 - year - old son who will go to college at 1 8 years old. She has to pay the $

Ellen has an 8-year-old son who will go to college at 18 years old. She has to pay the $25,000 tuition fee for each year in college (4 year college). How much does she need to put in the bank each year (1 year from now until her son is 18 years old) to cover all the costs? The interest rate is 12% compounded annually.
A)8,504.58
B)5,755.80
C)4,111.29
D)4,846.26
E)4,938.90

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!